CFTC Staff Letters Archive

CFTC Staff Letters Archive provides Letters from 2007 and earlier. For Letters published 2008 or later visit the All Letters page.

There are no Advisory Letters or Other Written Communications for 2007 or earlier.

Date	PDF and Description
03/26/1997	97-28 ; Rule 4.7(a);; No-Action The Division of Trading and Markets permitted a registered CPO/CTA to continue to claim relief under Rule 4.7(a), notwithstanding the presence of additional non-QEPs in its pool. The non-QEPs all have significant investment experience, and most are investment managers for an affiliate of the CPO/CTA that serves as co-investment manager to the pool and is itself registered as a CPO/CTA. The relief is subject to the conditions that each non-QEP: (l) consents in writing to being treated as a QEP; (2) has access to the pool's books and records; and (3) redeems or transfers his interests in the pool if he is no longer employed or listed as a principal of the CPO/CTA or its affiliate, if he was so employed or listed upon his investment in the pool.
03/26/1997	97-26 ; Section 4m(1);; No-Action In response to an inquiry concerning whether an individual could claim an exemption from CTA registration under Section 4m(1), the Division of Trading and Markets stated the two conditions were required in order to claim the exemption. First, during the course of the preceding twelve months, the person has not furnished commodity interest trading advice to more than fifteen persons, and secondly, the individual does not hold himself out to the public as a CTA.
03/24/1997	97-18 ; Rules 4.21, 4.22(a) and (b), 4.24, 4.25, 4.26;; No-Action The Division of Trading and Markets permitted a registered CPO/CTA to continue to claim relief under Rules 4.21, 4.22(a) and (b), 4.24, 4.25, 4.26 from certain disclosure and monthly reporting requirements despite the acceptance of additional limited partners (New Limited Partners) as investors in a commodity pool that invests primarily in U.S. securities. The CPO/CTA will: (1) provide each New Limited Partner with the pool's Limited Partnership Agreement, Private Placement Memorandum, quarterly financial statements and audited annual financial statements; (2) notify each New Limited Partner that the pool is operated pursuant to exemptive relief granted by the Division; (3) explain the nature and purpose of such exemption; (4) obtain from each New Limited Partner has written acknowledgment that he does not object to the pool's operation pursuant to exemptive relief; and (5) cause any New Limited Partner who ceases to be an employee of the CPO or the pool's co-investment manager to redeem or transfer his interests in the pool. In addition, all limited partners will have access to the pool's books and records.
03/24/1997	97-15 ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided relief under Rule 4.7(a) to a registered CPO, notwithstanding the presence of a non-QEP in its pool, where the non-QEP is an employee of the CPO who performs as a trader and analyst for the pool. The non-QEP has ready access to information pertinent to an investment in the pool and agrees to being treated as QEP.
03/21/1997	97-29 ; Rule 4.10(d)(1) & Rule 4.7(a)(1)(ii)(B)(2)(viii);; No-Action The Division of Trading and Markets found that a partnership consisting of a husband and wife, custodial accounts for their children, and trusts established for the benefit of the husband or wife and their descendants was not a commodity pool within the meaning and intent of Rule 4.10(d)(1) and, consequently, that the General Partner was not a CPO thereof. Because the partnership qualified for treatment as a QEP under Rule 4.7(a)(1)(ii)(B)(2)(viii), the Division did not address the request for relief from the ten percent restriction imposed on the assets of a Rule 4.7(a) exempt pool that may be used to purchase units in other Rule 4.7(a) exempt pools where not all the investors in the investor fund will be QEPs.
03/21/1997	97-22 ; Section 4k(3);; No-Action The vice president of a CTA not registered as an AP worked in the same office as a registered AP of the CTA. In response to a request for relief, the Division of Trading and Markets determined not to recommend that the Commission take enforcement action against the CTA or its vice president pursuant to Section 4k(3) of the Act based solely upon the failure of the vice president to register as an AP in connection with his activities on behalf of the CTA. The relief was subject to the conditions that the CTA's registered AP working in the same office as the vice president become president of the CTA and remain in charge of all futures-related activity of the company, no employee or agent of the CTA engage in, or supervise any AP engaged in, the solicitation of any client or potential client on behalf of the CTA, and the vice president remain listed as a principal of the CTA.
03/21/1997	97-21 ; Rule 4.7;; No-Action The Division of Trading and Markets would not recommend that the Commission take any enforcement action based solely upon the failure to comply with Rule 4.7 against the General Partner of a pool if it claimed relief pursuant to Rules 4.7(a) and 4.7(b), notwithstanding investment in the pool by four select investors. Each select investor had vast work experience in the financial services industry, held one or more graduate degrees and had complete access to information relating to the pool through their employment. The Division also would not recommend that the Commission take any enforcement action based solely upon the failure to comply with Rule 4.7 against the General Partner or the CPO of any Rule 4.7(a) exempt commodity pool in which the pool invested, if the pool invested more than ten percent of the fair market value of its assets in Rule 4.7(a) exempt pools.
03/21/1997	97-20 ; Rule 4.7(a);; No-Action The Division of Trading and Markets would not recommend that the Commission bring an enforcement action against a commodity pool operator (CPO) in connection with its operation of a pool as an exempt pool pursuant to Rule 4.7(a) solely based upon the CPO continuing to permit the investment in the pool of several non-QEP investors. The non-QEP investors included six employees of a management company that rendered services to the pool, an accredited investor who served as general counsel for the pool and management company for the past two and one-half years, and three trusts funded by a billionaire and prominent investor for the benefit of his children and whose trustee was an attorney with over twenty-five years of experience in advising clients in corporate, securities and investment omatters. Relief was conditioned upon each non-QEP investor consenting to being treated as a QEP.
03/21/1997	97-17; ; Rule 4.7(a);; No-Action The Division of Trading and Markets provided relief under Rule 4.7(a) to a registered CPO, notwithstanding the presence of two non-QEPs in its pool, where one non-QEP is a member of the CPO and affiliated CTA and the other non-QEP is an employee of an affiliated CTA. Each non-QEP has ready access to information pertinent to an investment in the pool and agrees to be treated as QEP.
03/21/1997	97-16 ; Rule 4.7(a);; No-Action A charitable foundation may be treated as a QEP with respect to a Pool where the charitable foundation's investment decisions are made by an individual who: (1) established and is the sole source of funding of the charitable foundation; (2) is registered as an associated person of the Pool's commodity pool operator; and (3) is a QEP with a net worth exceeding twenty-five million dollars and more than twenty-five years of investment experience.